German Crisis (1920s)
DMG was one of the most important German businesses at the time of the German crisis; tripling its capital to 100 million shares in 1920, and moving its headquarters to Berlin in 1922.
After the war the German automobile industry stagnated because of insufficient demand and because automobiles were taxed by the government as luxury items. The country also was hit by a petrol shortage.
In 1923, DMG production fell to 1,020 units, compared to Benz & Cie. making 1,382 in Mannheim. The average cost of a car was 25 million marks. Strike action and inflation pushed DMG to the limit. To survive DMG produced Mercedes bicycles and typewriters, and it even issued its own emergency money.
Read more about this topic: Daimler Motoren Gesellschaft
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